US: Chrysler ends its $5 billion debt to VEBA

Fiat Chrysler Automobiles announced its Chrysler Group unit managed to sign an agreement that would allow it to raise debt worth $5 billion – which in turn would be used to settle earlier than expected its existing bond due to healthcare trust VEBA.

The US automaker also announced it managed to increase an existing 2017 senior loan facility by $250 million, while it also signed a new $1.75 billion senior loan that matures in 2018.

The newly established FCA Group that was formed after CEO Sergio Marchionne struck a deal to acquire the remaining shares of Chrysler Group that Fiat SpA didn’t own said the US unit has raised no less than $1.375 billion and $1.38 billion dollars through two senior secured bonds maturing in 2019 and 2021 respectively, while also tapping two previous bond issues.

Fiat Chrysler Automobiles in the same statement repeated that the Group refinancing deal made now would ultimately allow it to further reduce debt-servicing costs by about $134 million for the 2014 – 2016 period.